One of the more positive signs of the property market in 2013 is that banks started to ease their lending criteria, a trend that will offer additional head winds as the property market claws its way back into more positive territory in 2014, said Org Geldenhuys, managing director of property development and marketing company, Abacus DIVISIONS.
“During 2013 financial institutions marginally relaxed their lending criteria, an ease which is expected to continue during 2014.
“Depending on how the new credit amnesty bill impacts the market, 2014 should see a greater level of loan easing,” said Geldenhuys.
During 2013 the percentage of loan application approvals witnessed an increase to over 51%, up from the 26% seen in 2009 during the height of the global economic recession.
“What we are also seeing on the ground is that we have more cash buyers – people and companies who have been sitting on their money during the economic recession.
“Now they are feeling more buoyant and are keen to invest some of this cash. This bullish sentiment is going to assist with the recovery in the commercial property market – and the residential property market.”